SMU Data and Models
January 21, 2016
SMU Steel Buyers Sentiment Index is Bucking Pessimistic Trend
Written by John Packard
Buyers and sellers of flat rolled steel are beginning to feel more optimistic about their company’s ability to be successful both in the current market environment as well as three to six months out into the future. Those in the industry seem to be bucking the national pessimistic trend we see on television every night (see Philly Fed article in tonight’s issue) and in the stock market.
Steel Market Update (SMU) believes that the December and early January domestic mill flat rolled price increase announcements have helped firm up margins at service centers. We also believe shrinking inventories are assisting in the development of a more positive (optimistic) attitude in the flat rolled steel community.
